Imagine working 10 years to become the lead marketing executive at a large retail organization only to find that your competitor is invading your market share by 20 percent each year. You quickly decided to launch several online marketing promotions while improving your products, but find your efforts are fruitless as your competitor continues to steal your customers, destroying your profits while raising its own. As you begin to analyze your competitor's business strategy, you find that while you were focused on sales reports, product inventory analysis, and other traditional marketing efforts, your competitor was making a massive investment in upgrading all of its management information systems. This included systems capable of collecting, storing, and analyzing data from every store, product, and sales representative in the market. In fact, your competitor now knows more about your products and sales cycles than you do. The new systems collect data not only throughout your competitor's company but also from a group of suppliers, retailers, and distributors around the globe. These new systems provide your competitor with the ability to adjust prices instantly based on daily customer traffic patterns, reorder automatically from every entity in the supply chains, and even move items within a store or between stores for maximum selling efficiencies. Your competitor has won and not because it had a higher-quality product or better sales and marketing strategies, but because it identified the value of management information systems coupled with the ability to instantly access big data within and beyond the organization. You quickly realize that your competitor's agility simply cannot be mimicked, offering it a huge competitive advantage. You sigh as you realize your company is in big trouble because it did not understand the dynamics of the big data age. We are all familiar with the information age and the improvements made to organizations around the world as they are able to better manage employees, track sales data, and analyze customer purchasing patterns. However, this scenario is an example of the game-changing impact of big data, the massive amounts of data being collected by humans and machines over the last few years. Companies are now capturing hundreds of terabytes of data on everything from operations and finances to weather patterns and stock market trends. Sensors are now embedded in everything from products and machines to store floors, collecting real-time data on operations and customers. Radical customization, continuous experimentation, and information-driven business models are the new trademarks of competition as organizations analyze massive volumes of data. Data volumes are exploding, and more data has been created in the past 2 years than in the entire previous history of the human race. a. Is using big data essential to a business success? Why or why not b. According to the case above why did your competitor do better than you? Can a amall business use big data or will be costly? Explain

Imagine working 10 years to become the lead marketing executive at a large retail organization only to find that your competitor is invading your market share by 20 percent each year. You quickly decided to launch several online marketing promotions while improving your products, but find your efforts are fruitless as your competitor continues to steal your customers, destroying your profits while raising its own. As you begin to analyze your competitor's business strategy, you find that while you were focused on sales reports, product inventory analysis, and other traditional marketing efforts, your competitor was making a massive investment in upgrading all of its management information systems. This included systems capable of collecting, storing, and analyzing data from every store, product, and sales representative in the market. In fact, your competitor now knows more about your products and sales cycles than you do. The new systems collect data not only throughout your competitor's company but also from a group of suppliers, retailers, and distributors around the globe. These new systems provide your competitor with the ability to adjust prices instantly based on daily customer traffic patterns, reorder automatically from every entity in the supply chains, and even move items within a store or between stores for maximum selling efficiencies. Your competitor has won and not because it had a higher-quality product or better sales and marketing strategies, but because it identified the value of management information systems coupled with the ability to instantly access big data within and beyond the organization. You quickly realize that your competitor's agility simply cannot be mimicked, offering it a huge competitive advantage. You sigh as you realize your company is in big trouble because it did not understand the dynamics of the big data age. We are all familiar with the information age and the improvements made to organizations around the world as they are able to better manage employees, track sales data, and analyze customer purchasing patterns. However, this scenario is an example of the game-changing impact of big data, the massive amounts of data being collected by humans and machines over the last few years. Companies are now capturing hundreds of terabytes of data on everything from operations and finances to weather patterns and stock market trends. Sensors are now embedded in everything from products and machines to store floors, collecting real-time data on operations and customers. Radical customization, continuous experimentation, and information-driven business models are the new trademarks of competition as organizations analyze massive volumes of data. Data volumes are exploding, and more data has been created in the past 2 years than in the entire previous history of the human race. a. Is using big data essential to a business success? Why or why not b. According to the case above why did your competitor do better than you? Can a amall business use big data or will be costly? Explain

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter6: Managing Start-Ups And New Ventures

Section: Chapter Questions

Problem 1CFCA

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